SAN JOSE – A purchasing group that includes an experienced local real estate company and a mutual fund with global reach has purchased a landmark office tower in downtown San Jose from technology titan Oracle America.
The new owners of 488 Almaden Blvd. paid $ 155 million for the downtown San Jose property, which consists of a prominent office tower and the adjacent parking garage. This is evident from the filings filed in Santa Clara County on May 21st.
The buying company is a group that includes Lane Partners of Menlo Park and PIMCO of Newport Beach. PIMCO is a major mutual fund advisor, actively managing $ 2.16 trillion in assets on behalf of a variety of organizations, corporations and individuals. PIMCO itself is owned by Germany-based Allianz, a giant financial services company.
“We consider downtown San Jose a leading market in Silicon Valley,” said Drew Haydel, partner at Lane Partners.
The office tower has a total area of 379,000 square meters and is 17 stories high. This emerges from a contribution by a property manager for the high-rise building.
Oracle sold the building as part of the tech giant’s strategy to downsize its Bay Area office space after the company decided to move its headquarters to Texas and leave Redwood City.
The buyers received a significant loan to finance the purchase from a group called Parlex 15 Finco, which is controlled by a mortgage arm of Blackstone, a New York City-based private equity firm.
The total mortgage loan was $ 148.2 million, according to records filed with county officials.
The land on which the office tower is located was purchased for $ 153.7 million, while the parking structure changed hands for $ 1.3 million.
“This unique asset … will be an ideal landing spot for an emerging or established company seeking an identity in an inner city setting,” Haydel said in comments emailed to this news organization.
488 Almaden Blvd. Office skyscraper in downtown San Jose. // //
Oracle had evacuated the building prior to the transaction. PwC, a large accounting firm, is currently the only tenant in the building. Oracle acquired the tower with the purchase of BEA Systems in 2008.
“We have big plans for the building and are happy to introduce them to the community,” said Haydel.